VA Disability Retro Pay

[S T]

Taxpayer is receiving Military Retirement, applied for and received the Award for a portion of the Retirement to be under VA Disability. DFAS will not make any corrections to the retro period - only for the current period moving forward.

Question - since I have Retro VA Disability award to 2010, I should be able to file an Amended Tax return for 2010 and 2011 - for the VA Disability portion to offset the Military taxable that was reported.

Should this be shown on the Pension and Retirement Line 16a and 16b with reduction, and explanation, or on line 21 ?

Thanks,
Sandy

[gboykin]

Line 21, with an explanation showing the calculation of how the retired pay was reduced.

[S T]

Thanks Gary,

I have all of the disability awards and the calculation to attach to the 1040X and State Amended, just was unsure which line item to place it on.

Sandy

[gboykin]

I have done many, and as long as you put a copy of the VA Award letter and show your calculations, everything is good. I usually reference the Strickland Decision in the write-up.